How BAE Systems boosts Lancashire's economy revealed

The BAE Systems-commissioned report ‘Our contribution to the UK and its regions’ highlights the impact the military equipment giant has on the economy of the county.

Beyond the 13,700 people directly employed by BAE Systems across Lancashire, including at its air sector factories at Samlesbury and Warton, the report shows that the company spent an estimated £190 million with 210 local suppliers in 2024 and supported a further 2,400 jobs.

Nationwide, the company contributed £13.7 billion to national GDP in the same year, accounting for one in every £200 of the country’s economic output.  

The report comes soon after the UK’s Strategic Defence Review was announced at BAE Systems in Glasgow, where Prime Minister Sir Keir Starmer outlined a plan to create: “A defence dividend – that will be felt in the pockets of working people and the prosperity of the country, securing growth for generations to come.”

Simon Barnes, BAE Systems group managing director - air, said: “As the UK’s sovereign combat air provider, we play a critical role in creating and sustaining world-class defence capability, helping the Royal Air Force protect the nation, and supporting our international allies.

“I’m exceptionally proud to lead an organisation that creates so many opportunities for the region, and the people who live and work here.

“Beyond our defence capabilities, our business drives significant growth across the North-West, sustaining thousands of highly-skilled jobs and contributing to the prosperity of the region.

Together with our partners large and small, we build resilient, lifelong careers, drive industrial capability, fuel innovation and strengthen local communities, all of which creates a lasting positive impact on the nation for decades to come."

Through its Industrial Strategy, the UK Government has made it clear defence is central to both national security and economic growth.

This report, released on Wednesday, outlines some of the ways BAE Systems is already delivering by:

• supporting more than 159,000 full-time equivalent jobs, including almost 50,000 in its UK business;
• driving economic activity through a UK-wide supply chain, with 5,800 UK suppliers and £5.8 billion spent supporting jobs across the country; and
• creating opportunities where they are needed most, with more than 40 per cent of its UK workforce living in the most deprived fifth of local authority areas, and £1.3 billion spent with businesses in those areas. 

The report also outlines how BAE Systems is intensifying its commitment to skills development.

In 2024, the company invested £230m in education and training, including more than £150m for 4,650 apprentices and almost £50m for graduate training.